State Gross Domestic Product: Factors Influencing the Economic Growth of Negeri Sembilan

Lim Kok Hwa¹, Kon Mee Hwa²

1. Assistant director of Economic Indicators Division, Department of Statistics Malaysia.
2. Principal assistant director of National Accounts Statistics Division, Department of Statistics Malaysia.

Abstract: The purpose of this article is to study the factors influencing economic growth of Negeri Sembilan. The data used in this paper focuses on regional economic growth rate of State Gross Domestics Product (GDP), particularly in the state of Negeri Sembilan. The growth of twelve years’ time series data for GDP by State from year 2005 to 2017 were employed in this study. This paper demonstrates the correlation and qualitative analysis of statistics data obtaining from the Department of Statistics Malaysia using E-Views statistics analytical program. In the first phase of the study, the correlation and relationship among Negeri Sembilan’s GDP and the main economic components, i.e. agriculture, mining and quarrying, manufacturing, construction, services and import duties, were all applied in the Least Square Method analysis. Then, the second phase analysis focuses on the significant variables with other related variables which consist of the consumer price index, unemployment rate and interest rate. The empirical findings generated three linear econometric models and indicated economic indicators that are correlated in influencing the growth of GDP in Negeri Sembilan. This paper is initiated by the statisticians in the Department of Statistics Malaysia and hope to be served as a guideline to young statisticians as well as the junior analyst in the field of statistical analysis using time series of GDP data at regional level, particularly at state level.

Keywords: Negeri Sembilan, regional economic growth, State Gross Domestic Product; economic growth, E-Views, correlation analysis.

Pages: 18 – 32 | Full PDF Paper